Plastics: Circular-economy principles could dramatically improve both economy and the environment. 2016 report from McKinsey, Ellen MacArthur Foundation and World Economic Forum

A new report by McKinsey, the Ellen MacArthur Foundation, and the World Economic Forum, The new plastics economy: Rethinking the future of plastics, finds that applying circular-economy principles to global plastic-packaging flows could reshape the material’s economy. In particular, it could drastically reduce negative externalities—valued conservatively by the United Nations Environment Programme at $40 billion —such as “leakage” into oceans as plastics escape established waste-collection systems.

Today, almost a third of all plastic packaging leaks, with about 8 million metric tons annually polluting oceans.

The new report explains that improvement efforts to date are highly fragmented and subscale. Urgent action is needed to move the industry into a positive spiral of value capture, stronger economics, and better environmental outcomes. The report explains how stakeholders evolve toward a “New Plastics Economy” with three main ambitions:

Create an effective after-use plastics economy by improving the economics and uptake of recycling, reuse, and controlled biodegradation for targeted applications

Drastically reduce leakage of plastics into natural systems (in particular, the ocean) and other negative externalities

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